AEM vs Salesforce Which Is More Profitable?

Adobe Experience Manager (AEM) and Salesforce are two prominent companies in the digital marketing and customer relationship management sectors. Both companies have seen significant growth in their stock prices in recent years, with AEM focusing on content management systems and Salesforce providing cloud-based CRM solutions. Investors interested in these stocks may want to consider factors such as market trends, financial performance, and competitive positioning when making investment decisions. In this article, we will compare the stock performance of AEM and Salesforce to help investors make informed choices.

AEM or Salesforce?

When comparing AEM and Salesforce, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AEM and Salesforce.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AEM has a dividend yield of -%, while Salesforce has a dividend yield of 0.47%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AEM reports a 5-year dividend growth of -33.41% year and a payout ratio of 0.00%. On the other hand, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 13.71%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AEM P/E ratio at -20.15 and Salesforce's P/E ratio at 58.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AEM P/B ratio is 0.87 while Salesforce's P/B ratio is 5.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AEM has seen a 5-year revenue growth of 0.62%, while Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AEM's ROE at -4.22% and Salesforce's ROE at 9.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are S$1.29 for AEM and $325.25 for Salesforce. Over the past year, AEM's prices ranged from S$1.16 to S$3.56, with a yearly change of 207.27%. Salesforce's prices fluctuated between $211.76 and $344.87, with a yearly change of 62.86%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.